The Real Estate Institute of Australia (REIA) is calling for home buyers to make the most of 50,000 new places available under the Australian Home Guarantee Scheme (HGS).
The HGS allows eligible home buyers on low and middle incomes to purchase a home with a deposit of as little as two to five per cent, while avoiding paying lender’s mortgage insurance (LMI).
For the 2024-25 financial year, 50,000 new places are available across three scheme guarantees.
There are 35,000 places for the First Home Guarantee (FHBG), 10,000 places for the Regional First Home Buyer Guarantee (RFHBG), and 5000 places for the Family Home Guarantee (FHG).
REIA President, Leanne Pilkington, said that the HGS was a proven tool to help home buyers enter the market despite supply shortages and affordability challenges across Australia.
“The HGS has already helped 160,000 Australians purchase a home, including first home buyers, single parents, and people in regional areas,” Ms Pilkington said.
“The best way to see if you can qualify for the scheme and seek pre-approval is to speak with a mortgage broker who secure up to 80 per cent of the HGS placements and can advise prospective first-time buyers on their options.
“Obviously market conditions are tough out there for entry level buyers particularly when you take into account broader cost of living pressures, so it is imperative that consumers use all tools in their toolbox and the HGS will be essential to some buyer’s considerations.”
The First Home Guarantee supports eligible first home buyers or buyers who have not owned a property in the past 10 years to purchase a new or existing home with a deposit as low as 5 per cent.
The Family Home Guarantee allows eligible single parents or legal guardians with at least one dependent child to buy their first home or to re-enter the housing market with a deposit of as little as 2 per cent.
While the Regional First Home Buyer Guarantee supports eligible applicants living in regional areas to buy their first home in a regional area with a deposit as low as 5 per cent.
The HGS is an Australian Government initiative administered by Housing Australia and available through 32 participating lenders.
